K’Taka To Receive 10 Pc More Tax Allocation Than Last Year: Union Minister

(MENAFN- IANS) Bengaluru, Feb 4 (IANS) The Union government has allocated 10 per cent more tax funds to Karnataka compared to last year, Union Minister for Food, Public Distribution and Consumer Affairs Pralhad Joshi announced.

Sharing the details on Tuesday, Minister Joshi stated that Karnataka will receive Rs 51,876 crore in tax allocation for the 2025-26 financial year.

In 2014-15, Karnataka received Rs 24,789.78 crore in tax allocation. For 2025-26, this amount has increased by 108 per cent to Rs 51,876 crore, he said.

He emphasised that under Prime Minister Narendra Modi's leadership, Karnataka has witnessed unprecedented development, especially in railway projects.

The 15th Finance Commission has fixed Karnataka's tax share at 3.647 per cent. From 2004 to 2014, Karnataka received only Rs 81,795 crore, whereas under the Prime Minister Narendra Modi-led NDA government from 2014 to 2024, the state has been allocated Rs 2,85,452 crore in tax funds.

The Union government has sanctioned Rs 7,564 crore for 15 crucial railway projects in Karnataka. Minister Joshi stated that this marks the highest-ever investment in railway projects for the state.

He stated, complete tax exemption for startups for 10 years (until April 2030) has been allowed and Rs 10,000 crore in funding is provided as support for startups.

Minister Pralhad Joshi expressed confidence that these bold reforms and major investments will shape a bright future for Karnataka, making it a hub of innovation and growth.

Criticising the Union Budget 2025, Karnataka Chief Minister Siddaramaiah dubbed it as a disappointing one, detrimental to the state's welfare.

"Not a single demand we raised in the pre-budget meeting was fulfilled. Karnataka, one of the highest tax-paying states, received nothing in the Budget," he claimed.

Criticising the Union Finance Minister Nirmala Sitharaman for claiming that the Karnataka government is facing bankruptcy, state Home Minister G. Parameshwara questioned what contributions she has made to the state.

Speaking to reporters in Bengaluru, he said, "Nirmala Sitharaman is the country's Finance Minister, and we all respect her. However, despite being a Rajya Sabha member from Karnataka, she has completely failed to protect the state's interests."

He added: "This is not just a recent issue -- it has been the case before as well. What contributions has she made to our state? She has not implemented even a single scheme that we can credit her for. If she had done so, I would have appreciated her."

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